Asia Life Insurance: Hong Kong capital controls – risk to new sales, but unlikely back book

Research evidence excerpt

Asia Life Insurance: Hong Kong capital controls – risk to new sales, but unlikely back book

Equity Research

18 June 2026

Asia Life Insurance

Hong Kong capital controls – risk

to new sales, but unlikely back

European Insurancebook

NEUTRAL

Capital controls tightening threatens new business growth for North America Insurance/Life

Asia insurers heavily exposed to Hong Kong (~30-40% of POSITIVE

sales, ~20% MCV), but history suggests limited impact on European Insurance Ivan Bokhmat

back books and earnings, implying recent share price +44 (0)20 7773 0417

weakness may overstate the fundamental risk. ivan.bokhmat@barclays.comBarclays, UK

Claudia Gaspari

The following listed companies are not under coverage by Barclays Research: AIA Group Ltd. +44 (0)20 3134 6039

(1299.HK). Information about these companies is being provided for information purposes only claudia.gaspari@barclays.com

and is not an investment recommendation by Barclays Research. Barclays, UK

Domenico TurcoWe believe the tightening of mainland-Hong Kong capital flows represents a risk to top-

+44 (0)20 7773 3505

line growth, although uncertainty remains on the final shape of the regulation. Current domenico.turco@barclays.com

regulation is focused on investment products (securities, futures and funds) – a minimal Barclays, UK

part of insurance product sales at 3% of sums assured and 6% of annual new business,

respectively. Nevertheless, lower cash inflows into Hong Kong may materially limit new North America Insurance/Life

business growth – after 2016/early 2017 regulatory focus, insurance sales in HK only Alex Scott, CFA

returned to growth in 2019. +1 212 526 1561

alex.scott@barclays.com

Impact on the back books and embedded value should remain minimal, however, unless BCI, US